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Title page 1

Contents 3

Acknowledgement of Country 5

Minister's foreword 6

The strategy at a glance 7

Objectives of the Future Gas Strategy 7

Guiding principles for Australia's gas 8

How we wrote the strategy 9

How Australian gas is used today 10

Gas use in Australia 10

How gas can help get us to net zero 17

Principle 1: Getting to net zero emissions by 2050 19

Summary 19

Gas use in Australia's transition to a net zero economy 19

Carbon management and geological storage 24

Principle 2: Keeping gas affordable during the net zero transition 27

Summary 27

Australian wellbeing 28

Managing gas prices 29

Ensuring the wellbeing of Australians in changing times 29

Principle 3: Finding new sources of gas to meet demand 31

Summary 31

Where is natural gas produced today? 32

Future gas gaps 33

Sources of gas supply from outside Australia's oil and gas sector 36

Our regulatory systems seek to balance the benefits and costs from gas production 37

First Nations people and regional communities 37

Principle 4: Gas use will shift to higher-value and non-substitutable uses over time 40

Summary 40

Gas-powered generation 40

Why will Australian industry and manufacturers still need gas in the future? 42

Why will Australian households still need gas? 44

Principle 5: Adapting the gas and electricity markets 45

Summary 45

Moving gas is expensive 45

Pipelines, storage and re-gasification terminals 46

Australia's gas markets in transition to 2050 47

Principle 6: Remaining a reliable trading partner for gas and low-emissions gases 49

Summary 49

How are Australia's LNG exports consumed today? 50

What role will Australian LNG play in 2050? 51

Australian LNG in an orderly energy transition 51

Australia is committed to meeting our long-term contracts 52

Where Australia goes from here 56

Action 1: Prevent gas shortfalls 56

Action 2: Reduce gas-related emissions 56

Action 3: Support households and businesses through the transition to net zero 57

Action 4: Empower First Nations people to benefit from the transition to net zero 57

Action 5: Promote geological storage of CO₂ and support our region's transition to net zero 58

Action 6: Update the strategy 58

Appendix A: Net Zero Scenarios 59

LNG modelling 59

West coast gas market modelling 60

East coast gas market modelling 60

Glossary of key terms 61

References 66

Tables 46

Table 1. Australia's gas storage facilities 46

Table 2. Proposed LNG Import Terminals 47

Figures 10

Figure 1. Gas consumption by state/territory and sector, 2021-22 10

Figure 2. Emissions from the use of gas by sector 11

Figure 3. Gas production and use in the Australian economy, including emissions (CO₂ equivalent) 13

Figure 4. Building demand for gas by scenario, 2023-43 20

Figure 5. Projected energy source in the NEM, Step Change 21

Figure 6. West coast gas demand by sector, 2016-2033 23

Figure 7. Australia's basins ranked for CO₂ storage potential 24

Figure 8. Australian gas basins, pipelines and LNG facilities 33

Figure 9. East coast gas supply and demand outlook, 2025-2035 33

Figure 10. West coast domestic gas supply and demand outlook, 2023-2033 34

Figure 11. Annual and peak day GPG demand, step change scenario, 2019-43 41

Figure 12. Australian LNG as a share of total gas supply, selected economies, 2022 50

Figure 13. Global natural gas demand by scenario, 2020-2050 53

Figure 14. Australian LNG export volumes to 2050, by scenario 54

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